Well, what a week! Just last week we were talking about a 0.50% hike at the next FOMC, and a terminal interest rate of 5.75%. One week later and after the failure of 3 US banks. And now the market is pricing in interest rate cuts as early as June 2023. With MAS even having to come out to issue a statement to reassure investors that Singapore’s banking system remains “sound and resilient”. All while 6 month T-Bills yields plunged to 3.65%, making Fixed Deposit interest rates overwhelmingly the better buy for cash investments. So I figured it was time to update the Fixed Deposit article. And to answer the 3 questions below:

1. Is it safe to put more than $75,000 in a Singapore / foreign bank? Especially after the failure of Silicon Valley Bank?
2. Will fixed deposit interest rates go even higher from here?
3. Or should you lock in interest rates for 12 – 24 months here?

...